Samsung Electronics is preparing to announce a shareholder payout package exceeding 100 trillion won ($72 billion)—potentially the largest such payout by a South Korean company—MoneyToday reported on Thursday, citing industry sources.
According to MoneyToday, the company plans to convene a board meeting before the end of August to approve measures that include special cash dividends. The program is expected to be funded primarily through 50% of the company’s free cash flow (FCF).
The report follows SK Hynix’s announcement of a 40 trillion won ($29 billion) share buyback program, highlighting the scale of shareholder payouts being considered by South Korean chipmakers.
While some analysts had speculated that Samsung might return up to 200 trillion won to shareholders, MoneyToday noted that such a scenario is considered unrealistic given the company’s investment needs.
The shareholder return program is expected to focus primarily on cash dividends rather than share buybacks—partly because buybacks could create additional regulatory complications involving Samsung Life Insurance and Samsung Fire & Marine Insurance, the report stated.
Last month, Samsung announced that its board was discussing parameters for shareholder returns for the current year, including special dividends, and intended to strike a balance between payouts and investments in future growth.
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